Pitney Bowes jumps 14% on cost-savings target boost

Pitney Bowes

01/07/2024 17:19

** Shares of Pitney Bowes  PBI.N  jump Mon after co boosts
cost-savings target
    ** PBI rises as much as 13.8% to $5.78, a 7-week high
    ** Stamford, Conn.-based shipping and mailing firm announced
Mon it increased savings target to $120-$160 mln from prior
range of $60-$100 mln
    ** Co said has already identified and initiated $70 mln in
cost savings, adding reductions announced today anticipated to
be largely reflected in H2 2024 pre-tax earnings and fully
reflected in 2025
    ** Pitney Bowes has been under pressure from activist
shareholder Hestia Capital, which has called for co to explore
alternative strategies for its global e-commerce segment, and
focus on mail sorting and postage meter unit
    ** Hestia currently #3 PBI holder with ~15.79 mln shares, or
~8.8% stake
    ** With move on Mon, PBI up ~30% YTD and up nearly 65% over
the past 12 months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))